Bailiff fears grow as council tax debt hits £5.5billion | Personal Finance | Finance

Families across Britain fear the knock of the bailiffs at the door with council tax debt hitting £5.5billion.

Council tax arrears grew by more than half a billion pounds in the 12 months to March and have more than doubled in the last 10 years, according to a new analysis by the Centre for Social Justice.

The leading think tank is calling for a change in regulations so households that miss a single monthly payment are no longer pursued for a whole year’s council tax bill.

It claims that a family in an average Band D property may miss a single payment of £206.50 and be made liable for the full annual payment of £2,065.

The CSJ warns that this can send vulnerable people into a “debt spiral”, with failure to pay the full amount resulting in “unscrupulous” bailiffs coming to homes to seize goods and collect payments. Bailiffs can add fees at every stage of the collection process, pushing people further into debt.

Giles Watling, the Conservative MP for Clacton, said: “It cannot be fair that those struggling to make one payment are expected to pay for their entire annual bill in a single lump sum or that councils continue to let bailiffs pile fees onto vulnerable debtors without ever checking their ability to pay.”

The think tank says “more than 90 percent of people experience a decline in their mental health when they find themselves in debt”.

Matthew Greenwood, head of debt at the CSJ, said: “We don’t live in the 1990s anymore and the vast majority of people are perfectly willing to pay their council tax. Outdated regulation and overzealous use of bailiffs drives vulnerable families, who can’t afford their bills, into a debt spiral while worsening their issue with further fees.

“We need a new conversation about how we help vulnerable families out of debt. It is with targeted support and long-term repayment plans that the public purse can get the money it is owed, not aggressive collection.”